The future price of XRP is a hot topic, with many analysts and investors speculating on its potential. In this video, Nick explores two hypothetical scenarios where major remittance companies, Western Union and MoneyGram, fully adopt XRP for all their settlements. These “thought experiments” offer a fascinating look at the potential demand and its impact on the digital asset’s value.

Model 1: Partial Adoption Scenario

This first model assumes a more conservative approach where Western Union and MoneyGram would still rely on traditional cash and fiat for some liquidity, but would use XRP for a significant portion of their settlements.

• Key Assumption: Companies maintain a blend of old and new systems.
• Calculated Demand: This scenario estimates a need for a base reserve of approximately $4.79 billion in XRP to support these operations.
• Price Projection: Applying a speculative multiplier of 50 to this demand, the XRP price could potentially reach $12.

Model 2: Full Adoption Scenario

The second model is a more extreme, “blue sky” scenario. It assumes a complete abandonment of traditional fiat routes in favor of a 100% XRP-based settlement system.

• Key Assumption: Both Western Union and MoneyGram go all-in on XRP, completely bypassing traditional financial rails.
• Calculated Demand: This model projects a massive demand, creating a need for around $700 billion in XRP to facilitate global transactions.
• Price Projection: With a more conservative speculative multiplier of 8 applied to this immense demand, the estimated XRP price could soar to roughly $94.56.

Historical Context: Ripple and Remittance Giants

It’s important to note the history behind these two companies and their relationship with Ripple, the company behind XRP.

• MoneyGram: In 2019, MoneyGram entered into a partnership with Ripple to use XRP for cross-border payments. However, this partnership was suspended in 2021 following the SEC lawsuit against Ripple.
• Western Union: Western Union also explored the use of XRP with a pilot program back in 2015, but ultimately did not proceed with full adoption.

Important Disclaimer

These price points are purely hypothetical and should not be taken as financial advice. The scenarios are based on “what if” situations that assume a level of adoption that has not occurred. They are meant to be a thought experiment to illustrate the potential impact of large-scale corporate adoption on the XRP market.